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Startups need to be smart when competing with bigger rivals

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Startups have to be clever when fighting larger rivals

You won’t find any Founder Mode discourse on this week’s newsletter, although the memes still appear. Instead, here’s your usual dose of startup news, from big rounds to pivots to recent product launches.

This week’s top startup stories

Image sources: Bryce Durbin / TechCrunch

When facing larger rivals, startups often have to be smart in regards to the fight. There isn’t any one right answer, which explains why many change their minds along the best way when they’re unlucky.

Brighter sky: The closure of X in Brazil is a profit for rival social network Bluesky, which has seen an enormous influx of latest users since last weekend. This was especially noticeable since it remains to be significantly smaller than Threads Meta and its 200 million monthly lively users.

Chat Battle: Anthropic has launched Claude Enterprise, a subscription plan for firms curious about using its AI chatbot, but with administrative tools and more safety features. It will compete with OpenAI’s ChatGPT Enterprise.

Throw within the towel:Shortly after raising $500 million in Series B funding, German AI startup Aleph Alpha is moving away from LLM competition to AI support with the launch of a brand new product called PhariaAI.

Still kicking: NightCafe doesn’t have the identical buzz as rival Midjourney, but its AI-powered art tools have over 25 million users. That also translates into profits; a source told TechCrunch that NightCafe is doing $4 million in annual revenue.

Piggyback: HR and payroll software company Paylocity has agreed to acquire enterprise startup Airbase for $325 million, nearly half its 2021 valuation of $600 million. Founder Thejo Kote said Paylocity’s size and scale will help Airbase reach a much larger audience.

This week’s top fundraisers

Ilya Sutskever-open ai
Image sources: JACK GUEZ/AFP/Getty Images

Another way to get ahead of the competition is to increase funding, but differentiation, innovation and reaching recent markets are equally essential.

Three months later:Safe Superintelligence (SSI), a startup founded just a couple of months ago by OpenAI founder Ilya Sutskever, has raised over $1 billion in funding, with the corporate reportedly being valued at $5 billion.

AI Agents:With $50 million in recent funding, You.com is narrowing its focus—hoping to turn its AI right into a productivity engine that solves complex search queries.

Hospital at home:Doccla, a British virtual hospital ward startup that helps hospitals manage patients remotely, has raised $46 million to expand into Europe.

Microcapsules:French cleantech startup Calyxia, a B Corp, has raised $35 million in a Series B funding round that may help it develop alternatives to microplastics, that are a growing pollution problem.

Fintech MENA:Ziina, a YC alum from Dubai, has raised $22 million in Series A funding to proceed growing her P2P payments app, which already has 50,000 retail and business customers.

The hottest news from the VC and fund industry this week

Ramneek Gupta, the capital of PruVen
Image sources: ProVen Capital

Proven: PruVen Capital, the fintech and insurtech enterprise capital firm founded by Ramneek Gupta, formerly of Battery Ventures and Citi Ventures VC, has closed its second fund at $378.5 million. Unlike the primary fund, which had Prudential Financial as its lead LP, this new-vintage fund can be backed by others.

Mainstream climate:The fourth climate-focused fund raised by Dutch firm SET Ventures has closed at €200 million, twice as large as its previous one. It will be deployed to 20-25 early-stage European startups which might be making renewable energy more mainstream.

AI Incubator:VC firm Mayfield Fund has committed $100 million to the newly launched AI Garage, an incubator for idea-stage founders curious about constructing “AI-powered” firms.

No less essential

Image sources: Palantyr

Palantir CTO Shyam Sankar has develop into “the secret weapon for Valley defense tech startups,” reports TechCrunch’s Margaux MacColl. He was considered one of the primary hires of 2023 to launch a program called First Breakfast, which doesn’t provide breakfast but offers a set of software tools that can provide recent defense tech startups a bonus.

This article was originally published on : techcrunch.com
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TechCrunch Minute: FDA Approval Clears Way for Apple’s AirPod Hearing Aids

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During last week’s GlowTime event, Apple announced that iOS 18 will include a feature that may allow users with mild to moderate hearing loss to make use of AirPods as hearing aids.

But Apple was still waiting for FDA approval—approval that was announced just days later. The FDA described it as the primary “over-the-counter hearing aid software,” and certainly one of its leaders suggested it could possibly be “another step that increases the availability, affordability, and acceptability of hearing support for adults with perceived mild to moderate hearing loss.”

TechCrunch’s Brian Heater tried out a partial version of the feature last week. It won’t be available to those with standard AirPods, just like the ones I’m wearing now; you will need the corporate’s latest premium headphones, the AirPods Pro 2, since the feature leverages the Pro’s passive noise cancellation and H2 chip.

In today’s TechCrunch Minute, we discuss how Apple’s hearing test works and the way it’s changing the hearing aid market.

This article was originally published on : techcrunch.com
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AWS Brings OpenSearch Under the Wings of the Linux Foundation

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AWS brings OpenSearch under the Linux Foundation umbrella

AWS announced today that it’s moving to a new edition Open searchits open source fork of the popular Elasticsearch search and evaluation engine to the Linux Foundation with the launch of the OpenSearch Foundation.

AWS first launched the OpenSearch project in 2021, after Elastic modified the license for its Elasticsearch and Kibana projects to its own proprietary license, the Elastic License. At the time, several open source vendors made similar changes, largely to stop large cloud providers—especially AWS—from offering hosted services based on their software.

Image sources: Open search

Ironically, the move comes just weeks after Elastic announced it might be re-offering Elasticsearch and Kibana under an open source license, AGPL-ewhich requires users to publish the entire source code in the event that they make any changes. Interestingly, Elastic decided to make this selection available alongside its own, more restrictive license because, as the company said, “we have people who really like ELv2.”

When AWS created OpenSearch, there was loads of skepticism surrounding the project. After all, AWS had never managed a project of this size before. Mukul KarnikAWS general manager for search services, admitted as much.

“When we started OpenSearch at the time, Amazon and AWS were new to taking an open source project and developing it,” he told me in an interview before today’s announcement. “Our goal from the very beginning was to be community-driven and see how we could get more community members to participate and contribute to the project.”

Karnik noted that AWS has step by step opened up the project, encouraging each input and broader governance. “It’s become more organic, in a sense, where we’re taking these organic steps to figure out how to get more people to participate in the project.”

With today’s launch, many other major corporations have joined the Foundation, including SAP and Uber, who’ve change into premium members, while Aiven, Aryn, Atlassian, Canonical, Digital Ocean, Eliatra, Graylog, NetApp Instaclustr, and Portal26 have change into general members.

Karnik noted that AWS expects its contribution to OpenSearch to extend.

In 2021, the foundation wasn’t on the roadmap yet, but now moving the project into its own foundation looks like a natural next step, Karnik said. He also noted that the OpenSearch ecosystem has added quite just a few innovations of its own to the project, including moving it from a cluster-based system to a more cloud-native architecture. He also noted that the project has recently introduced updates like separating compute and storage, in addition to segment replication. With the advent of artificial intelligence, interest in OpenSearch as a vector database has also increased, Karnik said.

The recent Foundation will operate under the standard Linux Foundation governance model, with an oversight board and a technical steering committee.

“The Linux Foundation is excited to provide a neutral home for open and collaborative development around open source search and analytics,” said Jim Zemlin, executive director of the Linux Foundation. “Search is something we rely on every day, for both business and consumer use, and we look forward to supporting the OpenSearch community and helping them deliver powerful search and analytics tools to organizations and individuals around the world.”

Like many similar foundations, one of the reasons AWS has decided to contribute to the project now could be to achieve access to the Linux Foundation’s services and expertise in managing and developing open source projects. Additionally, the move helps OpenSearch shed its perception of being primarily an AWS-driven project, a key step for continued growth and broader adoption.

This article was originally published on : techcrunch.com
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Flappy Bird creator rejects ‘official’ new version of game

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Ten years after the disappearance of the wildly popular Flappy Bird game, a corporation calling itself The Flappy Bird Foundation announced plans “re-hatch the official Flappy Bird® game.”

But this morning, the game’s creator Dong Nguyen posted a characteristically concise comment stating that he had nothing to do with the revival and that he “didn’t sell anything.” He added: “I don’t support cryptocurrencies either.”

To be clear, Nguyen’s comments don’t contradict anything in the inspiration’s announcement, which described the group as “a new team of passionate fans who want to share the game with the world” and he said he had “acquired rights from Gametech Holdings, LLC.” (Apparently Gametech successfully submitted application for termination (Flappy Bird, Nguyen’s trademark from just a few years ago.)

However, it’s clear from the post that Nguyen just isn’t involved within the new project and doesn’t seem particularly completely happy about it.

As for Nguyen’s reference to cryptocurrencies, while the inspiration’s current PR materials don’t mention anything related to cryptocurrencies, Varun Biniwale did make several searching hidden pages ON Flappy Bird Foundation website and located a reference to a Flappy Bird game that “flies higher than ever on Solana, soaring towards Web 3.0,” though it’s unclear whether this refers to approaching features or abandoned plans.

Flappy Bird — a comparatively easy side-scrolling game with retro graphics — was first released in 2013, eventually becoming a viral hit and probably the most downloaded app on each the iOS and Android app stores. However, Nguyen deleted the app in February 2014, declaring, “I can’t take it anymore.”

This article was originally published on : techcrunch.com
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